The Canadian Investor The AI Boom That Could Crash Markets and the Economy: Fact or Fiction?
Mar 2, 2026
They unpack a provocative Citrini Research scenario where rampant AI adoption could boost productivity while hollowing out wages and demand. The conversation traces how SaaS seat cuts, AI shopping agents, and payment shifts could ripple through platforms, private credit, insurance, and white‑collar housing markets. They end with policy ideas like taxing AI compute and household supports.
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Ghost GDP From AI Productivity Gains
- AI can create a productivity boom that doesn't flow to households, producing rising GDP but falling consumer demand.
- Citrini calls this "ghost GDP": firms cut headcount to boost margins while displaced workers reduce spending, reinforcing layoffs.
SaaS Seat Contraction Is A Two Way Attack
- SaaS faces both seat contraction and price leverage as companies cut roles and use AI to negotiate renewals.
- Vendors then adopt AI to stay efficient, which further reduces seat needs and accelerates revenue declines.
AI Agents Threaten Intermediary Platforms
- AI shopping agents can dismantle intermediary platforms by constantly hunting better prices and booking across providers.
- Travel booking, subscriptions and delivery apps lose renewal inertia once agents scan for optimal providers automatically.